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Group 2Compensation ManagementCompany BackgroundTaj exotica is a resort and spa brand.

Taj Exotica is located in Benaulim on the southwest cost of Goa.

This Mediterranean-style 5 star resort is one of the best five star hotels in Goa.

Set amidst fifty-six acres of lush gardens.

Description of the system

Employee benefitsPROMOTIONIn Taj, promotion is strictly given on the basis of merit. Here the things like experience and influence doesnt come into account. If one is capable then he will be promoted.

RECOGNITIONEmployees are considered important in Taj, and are recognized for their job.

JOB ROTATIONThis is done so that employees can excel in each and every department. An employees job is not rotated unless he has proven himself in a particular department.

Benefits and Non- Monetary Rewards

Medical reimbursement

Any Taj property free stay

50% discount in all Taj property for food.

Tie-up with Apollo hospital ( concession, free medical check-ups).

Housing facilities by deducting small amount from salary.

Free Training programs.

Children of employees are given loans benefits for higher education(HDFC Tie-up)

Life insurance & Medical insurance at discretion of the employee.

Other benefits like sick leave, paid leave, maternity leave.

In house doctor ( 24/7 hours available)

Company car for official purpose

Associate of the month (awards, letters and vouchers)

Special Thanks and Recognition SystemSTARCustomers of an organization can be satisfied by it only when its employees are satisfied.Recognizing and rewarding employees who showcased excellent performance at their work.Promoted successively to various levels.Employees are not just assessed on their performance but also on parameters like honesty, trustworthiness, concern for the environment, team spirit, cooperation etc.Appreciations from the customers also fetched points.

STARS-Five Different levels

LEVEL -1-was known as silver grade-120 points in three month.

LEVEL-2-Gold grade-130 points in three month of attaining the silver grades.

LEVEL-3-Platinum Grade-250 points within six months of attaining the gold grade.

LEVEL-4-chief operating officers club-510 or more points ,but below760 points.

LEVEL-5-MDs club-Highest Level in STARS-accumulated 760 or more points

On achievement of goals at different levels of stars

Employees were given gift voucher or a vacation in Taj Hotels of their choice in India.

Felicitated at a function held at Taj. Winners photographs were displayed on a big screen at the functions.

Designation: Guest Service SupervisorComponents of salaryPer monthPer annumBasic650078000 FDA170020400 House Rent Allowance235028200 Conveyance Allowance130015600 Personal Allowance815097800 Total 20000240000 PF (12% of Basic + FDA)11808 Gratuity4730.769231 Ex-Gratia8400 LTA 5000 Medical Entitlement7000COST TO COMPANY276938.7692Component of salary per annum AmountTaxTaxable amountBasic78000Full amount is taxable78000FDA20400Depends on company policy. Mostly fully taxable20400House Rent Allowance28200Applicable if living in a rented house. Minimum of three amounts 9840Conveyance Allowance15600Conveyance allowance of Rs 9,600 per annum is exempted from tax6000Personal Allowance97800Tax is fully exempted0LTA 5000The exemption shall be made in respect to two journeys performed in a block of four years.5000Medical Entitlement7000If substantiated with bills, are exempt to a limit of Rs 15,000 annually7000Gross Salary252000Gross taxable salary126240PositivesCompensation system is linked to performance (STAR).

Attract and retain employees.

Training programs helps in their personnel growth and to move up in the hierarchy of the organization.

NegativeReward system might affect employee performance and relationships.

Competition to earn points to become the star performer.

Experience doesnt come into account as they strictly follow merit pay.

RecommendationsMore monetary benefits should be given to the employees.

Experience factor should also be included for promotion of an employee.